Preparing for strategic tax changes

Traditionally risk-averse, tax professionals and the office of the CFO place an understandably high value on precision and certainty. This caution has historically shaped a measured approach to technology adoption, meaning that change tends to occur only once solutions are proven, trusted, and capable of delivering clear value. 

 

So, what can we expect to see in 2026? Firstly, it will come as little surprise that AI will remain a major tech trend for the tax sector, but from a macro perspective, the next 12 months could well be a defining year, with talk of an “AI bubble” getting louder as markets look for evidence of a return on the unprecedented levels of investment seen last year alone.

 

In many ways, we have been here before, with the dotcom bubble being the most painful example seen in recent memory. The main difference with AI, however, is the sheer speed of adoption, with basic tools accessible to virtually everyone and at little to no cost.

 

On the downside, this has created a tangible sense of fear, especially regarding the future of jobs and the workforce. While embracing AI in the workplace will undoubtedly be disruptive, we have seen technology evolution create new opportunities before, and ultimately, this situation will be no different.

 

 

Real-world applications

In reality, rather than removing people from the process entirely, AI is reshaping work across the tax sector to make it more effective and impactful. In addition, existing roles will change to focus on oversight, orchestration, data fluency, and scenario modelling, which will become the norm within a few years. Think of it this way: before the dotcom boom, few would have imagined the job of a website designer, and if anything, AI will clear the way for work that is more analytical, creative and strategic.  

 

The challenge for 2026 will be cutting through the noise. The AI bubble may ‘pop’, but this will only mean that businesses investing in building or integrating AI will gain clarity on where it genuinely adds value and where it’s just an expensive distraction. This is a positive that will ensure that organisations avoid over-engineering their operations in the rush to adopt new tools. Over the next 12 months, a disciplined approach will matter far more than chasing the latest model. The organisations that embrace AI thoughtfully, remove unnecessary complexity, and equip their teams with effective tools will be the ones that come out stronger on the other side of this cycle.

 

On a practical level, Agentic AI will be one of the most significant shifts in tax as we start to see more meaningful applications of the technology. Organisations are now moving beyond experimentation toward genuinely useful, practical deployments of AI agents into workflows to solve real problems. This is likely to see a response from regulatory bodies, including HMRC, as they release guidance on the technology’s use. This will be critical in giving organisations the confidence to move forward, particularly in regulated and risk-sensitive areas like tax.   

  

But what will this actually look like? In the early stages, agents will be deployed in low-risk use cases where trust can be built gradually. Data is one area where agents can add immediate value, freeing up significant time spent on input and number crunching without disrupting existing controls. As confidence grows, those same agents will start to take on more tasks and responsibilities. One area with significant potential is the review process. Agentic AI can support first and second-level reviews, flagging anomalies, highlighting risks, and preparing summaries, saving a significant amount of time for senior leaders, whose capacity is both limited and extremely valuable.    

  

 

Strategic tax changes are coming

Beyond AI, one of the most significant business-focused tax changes expected in 2026 is the continued trend of tax teams moving from siloed, compliance-led operations into more connected and value-driven functions. After years of relying on a patchwork of tools, spreadsheets and standalone solutions, organisations are increasingly working towards having a centralised data source. This shift is becoming essential as frameworks such as Pillar Two tighten the links between tax information and wider business activity, adding layers of complexity while heightening pressure to operate more efficiently. With regulatory oversight continuing to intensify, tax can no longer function as a standalone discipline.

 

Importantly, this transformation goes beyond meeting regulatory requirements. Centralising tax data enables organisations to move more quickly, make better-informed decisions and take a more forward-looking approach. As a result, many businesses are rethinking their operating models to integrate tax more deeply within the finance function, strengthening alignment with the CFO’s office and positioning tax as a contributor to strategic decision-making rather than a back-office function.

 

Taken together, these shifts point to a broader redefinition of how tax operates within the business. As AI becomes more embedded and data more interconnected, tax is moving out of the background and into the flow of everyday decision-making. What was once a largely reactive, compliance-driven function is increasingly shaping how organisations manage risk, plan for growth and respond to change. For businesses navigating an uncertain economic and regulatory landscape, the ability to connect intelligence, technology and strategy will be a clear differentiator in the years ahead.  

 

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Bruce Martin is CEO of Tax Systems

 

Main image courtesy of iStockPhoto.com and DenisMArt